Industry News | 8/23/2025
OpenAI opens New Delhi office, deepening India push
OpenAI confirms its first office in India, establishing a New Delhi base and initiating local hiring. The move is part of a broader strategy that includes localized pricing, payment integrations, and government collaboration to broaden access to its AI tools for India's vast user and developer communities. The expansion underscores India's growing importance on the global AI map.
OpenAI expands footprint in India
OpenAI, the creator of the popular ChatGPT AI assistant, has confirmed plans to establish its first office in India, selecting New Delhi as the base for its inaugural presence in the country. The move follows the formation of a local legal entity and an active hiring process, signaling that OpenAI intends to be more than a digital presence in one of the world’s fastest-growing technology markets.
Why India, why now?
- India is a critical growth engine for OpenAI’s tools, including ChatGPT, with the country ranking as the platform’s second-largest market by user numbers and among the fastest-growing territories.
- Company data show weekly active users in India have surged over the past year, and the country hosts a large student user base and a growing pool of developers, tying AI adoption to education and industry.
- OpenAI’s CEO has highlighted India’s potential, pointing to talented technologists, a vibrant developer ecosystem, and government support as key ingredients for a future AI leadership role for the country.
Localized pricing and payment integration
To accelerate mass adoption, OpenAI has introduced a local variant of its subscription plan—"ChatGPT Go"—priced around $4.60 (₹399) per month. The India-specific plan is designed to be more affordable than standard tiers while keeping access to advanced features. To streamline payments for millions of potential users, OpenAI integrated India’s Unified Payments Interface (UPI) into the subscription flow.
- The price point and payment flow reflect a pragmatic approach to market realities and consumer behavior in a price-sensitive market with one of the world’s largest online populations.
- Local payment integration also signals OpenAI’s intent to reduce friction in onboarding, trial, and ongoing use, particularly among students and early-career professionals.
Working with the government and local industry
The New Delhi office is part of a broader strategy to embed OpenAI’s technology within India’s regulatory and innovation ecosystem. The company has expressed support for the government’s IndiaAI Mission, a national push to bolster AI research, skills, and infrastructure. Initiatives like the OpenAI Academy, a collaboration tied to the mission, aim to provide AI education in regional languages and support for startups and educators.
- Ground-level presence helps the company navigate data governance considerations and regulatory requirements under India’s evolving policies.
- The move also deepens ties with India’s tech sector, which is a major source of demand for AI-powered services and potential co-creation opportunities.
Competitive landscape and potential impact
OpenAI’s India expansion comes amid heightened activity from rivals in the Indian AI space, including Google’s Gemini and other emerging platforms. Analysts say a physical presence could spur further innovation, drive competition, and reshape service models across India’s vast IT services industry. Close collaboration with local stakeholders may lead to new AI-powered offerings tailored to Indian industries, education, and governance.
- A localized strategy—spanning pricing, payments, and partnerships—could accelerate the broader uptake of AI tools across sectors such as healthcare, finance, and public services.
- The move may influence how AI companies approach regulatory compliance, data governance, and the balance between global platforms and domestic innovation.
Outlook
OpenAI’s decision to open a New Delhi office signals a sharpened focus on India as a strategic hub for AI development and deployment. By embedding the technology in local ecosystems, OpenAI aims to harmonize its global ambitions with India’s massive user base and skilled talent pool. The company’s stated mission to “build AI for India, and with India” suggests a future of closer collaboration, co-creation, and a more nuanced set of products for an Indian audience.